Verizon (VZ) Q1 Earnings Report Preview: What To Look For

Telecommunications giant Verizon (NYSE:VZ) will be announcing earnings results this Monday before market hours. Here’s what you need to know.

Verizon beat analysts’ revenue expectations last quarter, reporting revenues of $36.38 billion, up 2% year on year. It was a mixed quarter for the company, with a decent beat of analysts’ adjusted operating income estimates but a slight miss of analysts’ EBITDA estimates.

Is Verizon a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.

This quarter, the market is expecting Verizon’s revenue to grow 4.4% year on year, improving from the 1.5% increase it recorded in the same quarter last year.

Heading into earnings, analysts covering the company have grown increasingly bearish with revenue estimates seeing in majority downward revisions over the last 30 days. Verizon has missed Wall Street’s revenue estimates multiple times over the last two years.

Looking at Verizon’s peers in the consumer discretionary – wireless, cable and satellite segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Comcast delivered year-on-year revenue growth of 10.9%, beating analysts’ expectations by 3.4%, and AT&T reported revenues up 2.9%, topping estimates by 0.9%. Comcast traded down 5.9% following the results while AT&T was up 2.8%.

Read our full analysis of Comcast’s results here and AT&T’s results here.

There has been positive sentiment among investors in the consumer discretionary – wireless, cable and satellite segment, with share prices up 12.1% on average over the last month. Verizon is down 7.5% during the same time and is heading into earnings with an average analyst price target of $51.58 (compared to the current share price of $46.53).

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